Crypto Tax Audit CEO: Concerns over potential changes in the IRS's retroactive regulations are hindering the filing process

ChainCatcher news, Crypto Tax Audit CEO Clinton Donnelly stated that many American users have not reported cryptocurrency taxes due to concerns that the IRS may change regulations after they submit their tax returns. The IRS has the discretion to apply laws retroactively or to interpret laws retroactively. It is reported that Clinton Donnelly is also an expert in calculating capital gains for cryptocurrencies.

In a notice dated March 25, the IRS described how existing general tax principles apply to transactions using virtual currency. In this update, also known as Notice 2014-21, the IRS stated that the general tax principles applicable to property transactions will apply to transactions using virtual currency. While the notice does clarify the tax authority's stance on cryptocurrency transactions, Clinton Donnelly stated that it lacks the legal binding force of regulations. Prior to this update, the IRS had not issued any opinions on the tax treatment of cryptocurrencies.